NTC allows Globe’s takeover of Bayantel

The National Telecommunications Commission (NTC) has effectively allowed Globe Telecom Inc. to take over Bayan Telecommunications Inc.

The commission approved the joint application of the companies for the conversion of Bayantel's $423.3 million debt into shares, a disclosure to the Philippine Stock Exchange Friday said.

The conversion will allow creditor Globe Telecom to control at least 54 percent of the outstanding shares of Bayantel, which has been placed under a court-assisted corporate rehabilitation since 2003.

The two companies filed the joint application in October 2013 pursuant to a resolution that the Regional Trial Court in Pasig City has issued.

In August 2013, the court approved the amendment of Bayantel's rehabilitation plan that authorized Globe Telecom to convert its debt holdings in the company into a controlling interest.

The Court of Appeals issued a temporary restraining order against the planned takeover of Bayantel in October 2014, saying NTC should have first acted on objections raised by  the Philippine Long Distance Telephone Company (PLDT).

The transaction supposedly circumvents laws and regulations on the assignment, allocation, or use of radio frequencies that remained idle for over 10 years and requires congressional approval. -NB, GMA News